From April 4 to May 2, 2023, the crypto market witnessed significant sector rotation with a focus on meme tokens and artificial intelligence tokens.
Growth Leaders: Meme and AI
Meme tokens showed a 55% rise, while AI tokens increased by 50%. These figures are explained by the recovery following a sharp correction earlier in April, which led to a powerful short squeeze and accelerated growth in high-volatility sectors.
Slow Growth of L1, DEFI and GAMING
In contrast to meme and AI tokens, L1 and DEFI tokens showed modest results, increasing by 15-18%. GAMING tokens faced the most difficulties, dropping to -15% mid-month and recovering to +5% by May 2.
Overall Conclusions and Analysis
The overall market analysis indicates that amidst the increased interest in meme and AI tokens, traditional sectors like L1, DEFI, and GAMING remain in the shadows. Economic conditions and investors' preferences for less volatile assets contributed to this diversification.
Thus, the current volatility in the crypto market has stimulated interest in meme tokens and AI, while L1, DEFI, and GAMING come under pressure.
